BUSA 356 Lecture Notes - Lecture 3: Pricewaterhousecoopers, Revenue Recognition, Financial Statement
15 Jul 2016
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Ex: stock exchange microsoft stock prices goes down which is not a business transaction in terms of accounting (represented in terms of money) Financial accounting most known area balance sheets income statements all fall under this category. Auditing: rules and regulations of laws relating finance and accounting. Two types: work within company and independent that works outside. Taxation: highly valued in any country learn tax rules of the country. Based on credit history give you interest rate. Income statement gives you info about your net income. Five income statements in a year give you info on a specific period. Revenue higher than expenses to end up with profit. Companies prepare statement at the end of each quarter (end of every three months) and at the end of each year 4+1=5. Start over at the beginning of each year resets itself. Uses lots of business revenue such as ticket sales, movies, pictures. Also specify which expenses belongs to which revenue.
